A consistent way to trade profitably:How I trade engulfing candlesticks

in tradingprofitably •  7 years ago 

Primarily, I use the daily timeframe to trade along with bollinger band(20,2) and stochastic (10,3,3).

I patiently wait for an engulfing bar that engulfs two previous bars which must have broken the lower Bollinger band(for buy signals) or had broken the upper bollinger band(for sell signals).

I use the stochastic as entry confirmation signals. I only trade engulfing signals that issue a crossover at either above 80(for sell confirmation) or below 20(for buy confirmation).

Stop loss is usually placed above the high(for sell) and below the low(for buy signals). I am kinda conservative hahaha on my take profit.. I focus on 1:1 for initial profit, then reduce the lot by half and close the rest at 0.5 of the initial stop-loss.

Backtest it guys, it's consistently profitable 75-80% of the time. See you guys next time. Please add your comments.

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